ACCT CH 3

Labor costs charged to Manufacturing Overhead represent ______ labor costs.

indirect

A credit balance in the Manufacturing Overhead account means overhead was

overapplied

Selling and administrative costs incurred are treated as ______.

period expenses

A journal entry that debits Raw Materials and credits Accounts Payable is recording the

purchase of materials

Any purchased materials that will go into the finished product are first recorded in _______ ________ inventory account.

raw materials

t or f? when materials are purchased they are recorded in the raw materials inventory account

t

Which of the statements regarding closing out over or underapplied overhead is correct?

Closing to Cost of goods sold is simpler, and allocating is more accurate.

Underapplied or overapplied manufacturing overhead can be disposed of by closing it to

Cost of goods sold or allocating it to Work in process, Finished goods, and Cost of goods sold

The journal entry to record accrued property taxes for a factory building debits ______.

debits MOH and credits property tax payable

when a job is complete, its costs are transfered to

finished goods

When labor costs are incurred, _________ labor costs are added directly to the Work in Process account.

only direct

Which of the following costs are charged directly to the income statement? selling costs direct labor direct materials administration costs MOH

selling costs admin costs

Cost of goods manufactured is the ______.

sum of all jobs transferred from Work in process to Finished goods

If a company incurs $2,000 of factory rent, $1,000 of factory utilities, and $5,000 of miscellaneous factory costs, the journal entry to record these transactions would be to debit

manufacturing overhead $8000 and credit accounts payable $8000

Units of product that are only partially complete are contained in _____ _____ _____ inventory.

work in process

When a job is completed, the job costs are transferred OUT OF

work in process

job #4260 consisted of 1,000 units at a total cost of $200,000. The cost transferred to Cost of Goods Sold for the sale of 600 of the units is ______.

120,000

Raw materials inventory was $5,000 at the beginning of the year and $12,000 at the end of the year. During the year, a total of $27,000 in raw materials were purchased, including $4,000 of indirect materials that were put into manufacturing overhead during the period. Calculate the cost of direct materials used during the period.

16,000

Luver Corporation's Gross margin is $100,000, Cost of goods sold equals $70,000, and Selling and administrative expenses total $45,000. Net operating income is ______.

55,000

George Corporation recognized $1,000 of accrued property taxes on its manufacturing facility. The journal entry to record this debits ______.

Manufacturing overhead $1,000 and credits Property taxes payable $1,000

overhead is underapplied if

actual overhead is less than applied overhead

overhead is underapplied if

actual overhead is more than applied overhead

A journal entry debiting Salaries expense and crediting Salaries and wages payable could record ______.

admin salaries

The more accurate method of closing out the balance in Manufacturing overhead is

allocating it among Work in process, Finished goods, and Cost of goods sold

What side of the Manufacturing overhead account is applied manufacturing overhead entered on?

always the credit side

The journal entry to record selling and administrative salaries debits ______.

an expense account and credits cash or a liability

a journal entry that debits Work in process and credits Manufacturing overhead is recording the

application of manufacturing overhead costs

manufacturing overhead applied to production is always recorded on the ____________ side of manufacturing overhead account and the _____________ side is always used to record the actual manufacturing cost

credit; debit

A journal entry that debits Manufacturing overhead and credits Accounts payable would not be used to record ______. a. miscelanious factory overhead costs b. direct labor costs c. rent on factory equipment d. factory utilities costs

direct labor costs

To calculate direct materials on the schedule of cost of goods manufactured, add purchases to beginning raw materials inventory and subtract ______.

ending raw materials inventory and Indirect materials used

t or f direct labor costs flow through the raw material inventory account

f

When only a portion of the units involved in a job are sold, the ______

unit product cost is used to calculate the amount transferred from finished goods to cost of goods sold

manufacturing overhead cost include: (3 examples)

all costs other than direct material and direct labor examples: factory rent, factory utilities, factory maintenance wages

manufacturing overhead costs include (2) - factory supervisors salary - direct materials -factory insurance -ceo salary -office equipment

factory supervisors salary factory insurance

Any purchased materials that will go into the finished product are first recorded in the __________ __________ inventory account

raw materials

A journal entry that debits Manufacturing overhead and credits Property taxes payable records the ______

recognition of accrued property taxes

t or f raw materials inventory represent the cost of materials not yet in production

t

Manufacturing overhead is applied with a debit to ______.

work in process